FTD study on Quantifiable Edges

[URL="http://quantifiableedges.blogspot.com/2011/06/impact-of-breadth-on-follow-through-day.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+QuantifiableEdges+%28Quantifiable+Edges%29"]http://quantifiableedges.blogspot.com/2011/06/impact-of-breadth-on-follow-through-day.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+QuantifiableEdges+%28Quantifiable+Edges%29[/URL]

Naren was kind enough to send me this link of an IBD FTD study and the relationship with market internals. The QE report shows that FTDs associated with strong market internal days are much more likely to lead to profitable rallies.

I too have found this to be the case. In my studies I use a very strngent definition of successful rallies. A successful rally for me is one that goes up 9 or 10% or more over a 5 or 6 week or longer period. I find that I can make money in that environment. Strong market internals in the viccinity of a FTD is more likely to lead to success. I do not find that the strong market internals need to happen on the FTD itself. Stong thrusts in market internals within 10-days either side of the FTD is sufficient.